$14.7 Billion Volkswagen Emissions-Cheating Settlement Approved By Federal Judge

A federal judge on Tuesday approved Volkswagen's $14.7 billion settlement over its emissions-cheating scandal, clearing the way for the automaker's massive buyback program to begin across the country next month.

Judge Charles Breyer of the U.S. District Court in San Francisco had signaled last week he would approve the settlement between the German automaker, the federal government, Volkswagen customers and the state of California. In his order Tuesday, Breyer called the settlement "fair, reasonable and adequate."

Volkswagen still faces a criminal probe from the federal government. Volkswagen was found to have installed "defeat devices" on nearly 500,000 diesel vehicles that would reduce emissions only when cars were being tested, cheating environmental and consumer protection regulations.

The civil settlement covers 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3.

The $14.7 billion covers two major parts of the settlement:

• Anyone who bought the affected cars can get a full buyback and lease termination from Volkswagen, which could cost the company as much as $10.03 billion.
• The company will also spend $4.7 billion "to mitigate the pollution from these cars and invest in green vehicle technology."

Buybacks will begin in mid-November. Anyone who thinks they are eligible for the program can click here to see more information.

You can read the entire settlement agreement below: